Debt-laden SA is sitting on a ‘ticking time bomb’
The warning comes as brick-and-mortar banks prepare to take on digital newcomers
South Africans are increasingly using debt to fund consumption, a worrying sign for lenders, which are increasingly selling loans to boost earnings to ward off competition from digital newcomers.
Recent data from the Reserve Bank, TransUnion, SA Savings Institute and National Credit Regulator (NCR) raises a red flag about the rising size of debt shouldered by South Africans, the lack of household savings and the increasing number of people seeking debt counselling.
The warning signals come as traditional brick-and-mortar banks prepare to take on digital newcomers such as the Patrice Motsepe-backed TymeBank, which is working on a competitive new credit offering to entice consumers to take on debt...